Vancouver, British Columbia--(Newsfile Corp. - March 23, 2021) - RYU Apparel Inc. (TSXV: RYU) (OTCQB: RYPPF) (FSE: RYAA) ("RYU" or the "Company"), creator of urban athletic apparel, is pleased to announce its new growth strategy and a non-brokered private placement of secured convertible debentures (each, a "Debenture") for total gross proceeds of up to $10,000,000 (the "Offering").

Having already delivered on many of the company's renewal goals in 2020, in conjunction with its financing, it is now meeting with investors to unveil the beginnings of its growth strategy under the leadership of newly appointed COO Rob Blair. Although only having been at the helm of RYU for less than two-months, Mr. Blair, who previously worked with iconic brands Red Bull, Lululemon (NASDAQ: LULU), Gap Body (NYSE: GPS) and Nike (NYSE: NKE), has already made his mark on the Company's design, merchandizing and corporate brand strategy.

The growth strategy, led by the new brand motto, Train, Run, Live, and with a focus on being a technology first company built around an integrated digital eco-system, aims to carve out its share of the healthy, yet largely undifferentiated athleisure and athletic apparel market. Targeting $100 million in revenue by 2025, the plan, which will be fully unveiled in the coming months, is pillared by product innovations, unparalleled customer experiences, demand creations through content and a seamless end-to-end brand experience.

"Digital shopping has replaced physical channels at a rate of 10-years' growth in just three months," stated Rob Blair, "Yet, statistics show that only 18% of consumers believe brands offer an exceptional customer experience. To me, that's a big opportunity."

In addition to the key team members and brand partners, such as Canada Skateboard, Zoom Media and Branded Entertainment Inc, that onboarded in late 2020, core to its plan, the company has also expanded its operational team to enhance its proficiency in eCommerce, brand and merchandising.

Currently underway is the finalization of the brand and product creative direction, further aligning the supply chain and ensuring the company meets its corporate responsibility and sustainability guidelines.

Cesare Fazari, Chairman and CEO, commented, "We believe that our new strategy, combined with this growth capital will benefit our existing shareholders by greatly increasing our universe of potential customers, store partners, investors and shareholders both in the U.S. and internationally. We are moving toward our ultimate vision of building the leading urban apparel brand and as I've stated before, I am committed to the successful achievement of joining the ranks of the Lululemon, Roots, and Canada Goose as a globally recognized Canadian apparel brand."

Terms of Convertible Debenture

The Debentures will bear interest at 7% per annum (the "Interest"), from the date of issuance (the "Closing"), payable annually until the earlier of the Maturity Date (as defined below) or the date of any conversion thereof. The Debentures will mature on the date that is 3 years from the date of issuance (the "Maturity Date").

The Debentures are convertible into common shares in the capital of the Company (each, a "Share"), at the option of the holder, at a price of $0.35 per Share (the "Conversion Price"), at any time prior to the Maturity Date, subject to adjustment as well as an accelerated conversion right whereby if, for any 15 consecutive trading day period after the date of issuance, the volume weighted average trading price for the Shares on the TSX Venture Exchange ("TSXV") equals or exceeds $0.70, then, at any time thereafter, the Company shall be entitled to automatically convert any outstanding principal amount and accrued, but unpaid interest thereon (collectively, the "Outstanding Amount") into Shares at the Conversion Price upon giving the Agent (as defined below) notice and, in such case, the conversion of the Outstanding Amount will occur on the 15th day after the date of delivery of such notice.

So long as the Debentures remain outstanding, the Company will, on a pro rata basis, pay down any Outstanding Amount then outstanding, from proceeds raised by the Company in connection with an "at the market offering" conducted by the Company (each, an "At the Market Offering"). The applicable portion of any At the Market Offering which shall be attributable to pay down any Outstanding Amount is to be 33% of the gross proceeds from such At the Market Offering or such other amount as may be required by the British Columbia Securities Commission or other securities regulatory authority, as applicable.

Repayment by the Company of amounts owing under the Debentures is secured by a charge over all of the assets of the Company. All subscribers to the Offering will be required to enter into an agency and inter-lender agreement with the Company, pursuant to which the subscribers will appoint an agent (the "Agent") to act on their behalf as to certain matters relating to the Debentures, including with respect to enforcement of the security interest.

The proceeds of the Debenture Financing are expected to be used for general working capital and accounts payable.

One or more insiders of the Company may acquire Debentures under the Offering. Such participation will be considered to be "related party transactions" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). This portion of the Offering will, however, be exempt from the need to obtain minority shareholder approval and a formal valuation as required by MI 61-101 as the Company is listed on the TSXV and the fair market value of the Debentures distributed to insiders or the consideration paid by insiders of the Company is not expected to exceed 25% of the Company's market capitalization. No new insiders are anticipated to be created, nor will there be any change of control as a result of the Offering.

Closing of the Offering remains subject to the acceptance of the TSXV. The Debentures and the Shares issuable upon conversion of the Debentures will be subject to a statutory hold period expiring on the date that is four months and one day after Closing. The Offering will be conducted by the Company utilizing the "accredited investor" exemption of National Instrument 45-106 - Prospectus and Registration Exemptions and also other applicable exemptions available to the Company.

RYU Apparel Announces TSX Venture Exchange Approval for Issuance of Loan Bonus Shares

Further to its news release dated March 9, 2021 regarding entry into a loan agreement with Aladdin Ventures Inc. (the "Lender"), the TSX Venture Exchange has approved the issuance of 1,306,667 common shares of the Company (the "Loan Bonus Shares") to the guarantor of the loan under the loan agreement. The Loan Bonus Shares are subject to a four-month plus one day hold period in accordance with applicable securities laws.

None of the securities issued in the Offering will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

For regular updates on RYU Apparel visit: http://ryu.com

On Behalf of the Board

RYU APPAREL INC.

"Cesare Fazari"
Cesare Fazari, CEO
Tel: 1‐844‐535‐2880

Corporate Communications
Anna Brazier +1
(844) 535-2880
investors@ryu.com

U.S. Investor Relations
RedChip Companies Inc.
Dave Gentry
(407) 491-4498
Dave@redchip.com

About RYU

RYU Apparel (TSXV: RYU, OTCQB: RYPPF), or Respect Your Universe, is an award winning urban athletic apparel and accessories brand engineered for active lifestyles. Designed without compromise for fit, comfort, and durability, RYU exists to facilitate optimal human performance. For more information, please visit the RYU website at: http://ryu.com

This press release contains forward-looking information that involves various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of RYU, such as statements: (i) that RYU intends to undertake and close the Offering and the use of proceeds thereof, and (ii) that RYU may undertake an At the Market Offering to pay down any Outstanding Amount in the future or at all. There are numerous risks and uncertainties that could cause actual results and RYU's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) risks inherent in the apparel industry in general; (iii) the inability of RYU to complete the Offering or any At the Market Offering, as applicable; or (iv) the TSXV not approving the Offering. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, RYU does not intend to update these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES

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